December Purchasing Manager Index Declined to 48.4%

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December Purchasing Manager Index Declined to 48.4%

Tempe, AZ, February 1, 2023-The December Manufacturing Purchasing Managers Index (PMI) registered 48.4%, 0.6 percentage point lower than the 49% recorded in November. Regarding the overall economy, this figure indicates contraction after 30 straight months of expansion. 

The Manufacturing PMI figure is the lowest since May 2020, when it registered 43.5%. The New Orders Index remained in contraction territory at 45.2%, twp percentage points lower than the 47.2% recorded in November. 

The Production Index reading of 48.5% is a three-percentage point decrease compared to November’s figure of 51.5%. 

The Prices Index registered 39.4%, down 3.6 percentage points compared to the November figure of 43%; this is the index’s lowest reading since April 2020 (35.3%). 

The Backlog of Orders Index registered 41.4%, 1.4 percentage points higher than the November reading of 40%. 

The Employment Index returned to expansion territory (51.4%, up three percentage points) after contracting in November (48.4%). 

The Supplier Deliveries Index reading of 45.1% is 2.1 percentage points lower than the November figure of 47.2%; this is the index’s lowest reading since March 2009 (43.2%). 

The Inventories Index registered 51.8%, 0.9 percentage point higher than the November reading of 50.9%. 

The New Export Orders Index reading of 46.2% is down 2.2 percentage points compared to November’s figure of 48.4%. 

The Imports Index continued in contraction territory at 45.1%, 1.5 percentage points below the November reading of 46.6%.

The two manufacturing industries that reported growth in December are primary metals and petroleum and coal products. The 13 industries reporting contraction in December, in the following order, are wood products; fabricated metal products; chemical products; paper products; plastics and rubber products; electrical equipment, appliances and components; furniture and related products; apparel, leather and allied products; computer and electronic products; machinery; food, beverage and tobacco products; transportation equipment; and miscellaneous manufacturing.